Cool Systems manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs...
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Accounting
Cool Systems manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs to be $190 per air conditioner, consisting of 75% variable costs and 25% fixed costs. The company has surplus capacity available. It is Cool Systems policy to add a 30% markup to full costs. A medium sized motel chain is currently expanding and has decided to create more rooms, and air condition all of its rooms, which are currently not air conditioned. Cool Systems is invited to submit a bid to the motel chain.
What per unit price will Cool System MOST likely bid for this special order of 50 units?
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